Slide 1: Analyst Presentation Q3FY20
The Camellias ANALYST PRESENTATION ANALYST FEBRUARYPRESENTATION 2020 DLF Midtown, Delhi Q3FY20 Perspective Image 1
Slide 2: Result Highlights – Q3FY20
Result Highlights – Q3FY20 Gross Operating Net Sales Cash FlowLetters before Possession Booking Net Incremental Interestfor Issued & tax Net Sales Booking Gross Leasing Leasing 1,162 Rs xunits crore Rs 731 Rs xcrore crore 1.33 msf 0.44 msf 2.38 msf Operating Cashflow Rs x crore Gross Operating Cash
Slide 3: Union Budget Highlights 2020
Union Budget Highlights 2020 Budget maintains status quo and neutral for industry ❑ The Union Budget presented a neutral stance and maintained status quo for the RE sector ❑ No major thrusts for the business due to which stress within industry is likely to continue for few more quarters. ❑ Given the
Slide 4: Strategy
Strategy Remain committed and confident in delivering our business goals ❖ Completed Inventory : Focus remains on faster monetization of the Development completed inventory, ~ Rs 9,415 crore. Business Steady ❖ Planned Development : Entering into the new cycle of development Free Cash for replenishme
Slide 5: DLF Limited – Business Update
DLF Limited – Business Update Cautious approach for Residential development; Aggressively pursuing rental growth ❑ Sales: ➢ The company remains committed to its goals and is confident of achieving its Sales target of Rs 2,700 crore for the current fiscal. ➢ Luxury segment demand subdued and we antic
Slide 6: DLF Limited – Business Update _contd..
DLF Limited – Business Update _contd.. ❑ Rentco: ➢ Rental Business remains buoyant ; good traction in the market for rental business ➢ Company focusing on creating new supply to cater the growing demand. Initiated development of Downtown, Gurugram and Downtown, Chennai. ❑ Capital Structure: ➢ Net de
Slide 7: DLF – Summary Consolidated Financial Results
DLF – Summary Consolidated Financial Results1&2 Summary: ❑ Sales recognition of Rs 1,005 crore based on issuance of 1,162 PL’s ( 2.38 msf ) during the quarter ❑ DLF net rental for the Quarter, stood at Rs 62 crore ❑ Operating cash deficit in this quarter, mainly due to the last leg of payouts for th
Slide 8: Q3FY20 – Sales Update
Q3FY20 – Sales Update Gross Sale Value Net Sale Value Location (Rs in crore) (Rs in crore) DLF 5 66 (154)* Rest of Gurgaon 816 816 National Devco 124 70 Total 1,005 731 ❑ Camellias Update: ➢ Fit-outs of ~70% apartments underway; customers expected to move in late calendar year. ➢ Club at advanced st
Slide 9: Q3FY20 – Sales Update
Q3FY20 – Sales Update ❑ Sales Mix: ➢ Luxury sales contributing only 26% of total sales; expected to remain muted and expected to recover once market picks up. ➢ Significant contribution from premium segment, primarily led by new sales from Ultima, Phase-II launch. ➢ Company is upgrading its existing
Slide 10: Launch Update – The Ultima
Launch Update – The Ultima ❑ The project is sprawled across 22 acre with 85% open area and spectacular landscaping. ❑ Clocked approx. Rs 800 crore of Sales during Phase-2 launch. ❑ Approx. 90% of the project sold. ❑ The response signifies customer acceptance of fully completed, well located, premium
Slide 11: DLF Limited - Profit & Loss (Consolidated)
DLF Limited - Profit & Loss (Consolidated) Nine Months year Ended Nine Months Ended Year Ended December 31, 2019 December 31, 2018 March 31, 2019 Q3 FY20 (Reviewed) Q2 FY20 (Reviewed) Q3 FY19 (Reviewed) (Unaudited) (Unaudited) (Audited) Ind AS Ind AS Ind AS Ind AS Ind AS Ind AS Percentage of Percent
Slide 12: DLF Limited – Balance Sheet (Consolidated)
DLF Limited – Balance Sheet (Consolidated) (₹ in crores) As on December 31, As on March 31, Particulars 2019 2019 (Unaudited) ( Audited) ASSETS Non-current assets Property, plant and equipment 1,388 1,459 Right to use assets 256 - Capital work-in-progress 85 103 Investment property 2,599 3,696 Goodw
Slide 13: DLF Limited – Balance Sheet (Consolidated)
DLF Limited – Balance Sheet (Consolidated) As on December 31, As on March 31, Particulars 2019 2019 (Unaudited) ( Audited) EQUITY AND LIABILITIES Equity Equity share capital 495 441 Warrant - 750 Other equity 36,095 32,385 Equity attributable to owners of Holding Company 36,590 33,577 Non-controllin
Slide 14: DLF Limited – Cash Flow
DLF Limited – Cash Flow (INR Crs.) Q3FY20 Inflow • Collection from sales 612 • Rentals 36 Sub-Total 648 Outflow • Construction 185 • Government / Land charges (5) • Overheads 214 Sub-Total 394 Operating Cash Flow before Interest & Tax 254 • Finance cost (net) 179 • Tax (net) 36 Operating Cash Flow a
Slide 15: Strong Capital Structure
Strong Capital Structure Net Bank Debt – excluding DCCDL group Sources of Debt o/s. Repayment Borrowing o/s. (INR Crs.) <1 Yr > 1 < 3 Yr >3 Yr (INR Crs.) Q3FY20 Q2FY20 30.09.19 in Q3 in Q3 31.12.19 Banks Gross opening debt (Net of IndAS adj.) 7,050 6,211 -Private Banks 1,232 -456 777 Less : Debt rep
Slide 16: Net Debt – Way Forward
Net Debt – Way Forward ❖ Net debt expected to remain at similar levels in Q4FY20 Look ahead: ❖ Committed to further deleveraging in the near future. ❖ Exploring further monetization of certain identified land parcels for rental development by way of its existing JV arrangements and/or new alliances;
Slide 17: Key Considerations for Development Business
Key Considerations for Development Business 01 Quality of DLF’s inventory Track record and ability to achieve right price for DLF projects 02 03 Development Update Strategic nature of DLF’s land bank 04 17
Slide 18: Completed Inventory
Completed Inventory Value (Rs cr) Sale Booking Area ( in msf ) Value (Rs cr) 30.09.2019 Q3 FY20 31.12.2019 31.12.2019 1 DLF 5, Gurugram 4,675 (154) 1.56 4,830 2 Rest of 3,025 816 2.69 2,210 Gurugram 3 2,445 70 5.89 2,375 National Devco Total 10,145 731 10.14 9,415 18
Slide 19: Project Cash Flows as on December 31, 2019
Project Cash Flows as on December 31, 2019 In Rs crore Residual Inventory Pending Receivable 1 Sold Value Camellias, DLF5,Gurugram 5,400 4,460 645 2 Crest, DLF5,Gurugram 3,983 10 200 3 Horizon Centre, 1,995 360* 28 DLF5,Gurugram 4 Ultima, 1510 220 757 New Gurugram 5 ROG, Gurugram 1,990 310 6 Nationa
Slide 20: Residual EBITDA as on December 31st, 2019
Residual EBITDA as on December 31st, 2019 Rs crore Total EBITDA to be recognized in Sales done till December 2019- (A) 5,130 Total EBITDA in unsold inventory – (B) 4,600 Total EBITDA to be recognized in the next 4 to 5 years – (A+B) 9,730 Note: EBIDTA of DLF rental assets/ new projects not included
Slide 21: DLF (ex-DCCDL) – Development Update
DLF (ex-DCCDL) – Development Update Project / SPV Development Potential Development Status DLF Urban ~1.9 msf Private Limited Construction Commenced DLF Share – 50% (GIC JV) Zoning Approvals and Environmental DLF Midtown ~ 6 msf Clearance received, Private Limited DLF Share – 50% Project under desig
Slide 22: Completed Inventory – DLF 5
Completed Inventory – DLF 5 The Camellias % of project sold –60% Value of inventory – INR 22 4,460 crore
Slide 23: Completed Inventory – Rest of Gurgaon
Completed Inventory – Rest of Gurgaon The Skycourt The Ultima % of project sold – 93% % of project sold – 86% Value of inventory – INR 43 Crs Value of inventory – INR 220 Crs Alameda, Gurugram Garden City, Gurugram % of project sold – 80% % of project sold – 78% Value of inventory – INR 298 Crs 23 V
Slide 24: Completed Inventory – National Devco
Completed Inventory – National Devco Kings Court, Greater Kailash Riverside Kochi % of project sold – 74% % of project sold – 68% Value of inventory – INR 257 Crs Value of inventory – INR 125 Crs Prime Tower, Okhla Hyde Park, Chandigarh % of project sold – 76% % of project sold – 85% Value of invent
Slide 25: Overview of DLF’s Rental Assets (ex-DCCDL)
Overview of DLF’s Rental Assets (ex-DCCDL) Lac sqf Leasable Leased Leased/ Rent(psf/month) Building Name Area Area leasable In place Current WALE* (Lacs sqf) (Lacs sqf) area % OFFICES: Kolkata II 9.9 9.6 97% 34 30 76 DLF Centre 1.7 1.4 83% 367 400 75 Amex 5.1 5.1 100% 49 122 20 Gateway Tower 1.1 1.1
Slide 26: Significant Land Reserves for Future Growth
Significant Land Reserves for Future Growth 192 msf (~) of total development potential1 (msf) Large land reserves in strategic locations across India Other Indian Cities - 35 Chandigarh Tri-City – 16 Delhi Metropolitan Region - 15 192 msf1 of development Jalandhar Kasauli potential Shimla Ludhiana C
Slide 27: High Quality Land Reserves with Significant Asset Value
High Quality Land Reserves with Significant Asset Value DLF 5, Gurugram Chanakyapuri, New Delhi ❖ Development Potential : ❖ Development Potential : ~2msf ~17msf* ❖ Superior location in Diplomatic ❖ Strategic location for Super area; close proximity to CBD- Luxury/Luxury Developments Connaught Place
Slide 28: Environmental, Social & Governance (ESG) - Update
Environmental, Social & Governance(ESG) - Update ❑ DLF continues to focus on building a safe, sustainable and compliant ecosystem. The Company has adopted best practices in various fields. ❑ In this quarter, DLF has been assessed on the ESG framework by: 1) MSCI 2) FTSE Russel and has also been incl
Slide 29: Recent Awards and Recognition
Recent Awards and Recognition ❑ Sword of Honor by British Safety Council ❑ World Luxury Spa Awards ✓ Only Company globally to have won 13 swords of honor ✓ The Lodhi-Luxury Hotel Spa Country Winner: India ❑ Shopping Centre Forum by India Shopping Centre ❑ National Awards for Marketing Excellence (BT
Slide 30: DLF Cyber City Developers Limited
DLF Cyber City Developers Limited 30
Slide 31: Strong business performance continues
Highlights – Q3FY20 Strong business performance continues Rental Revenue Run Operational Portfolio Gross Leasing (Q3) Net Incremental Rate1 (Developed) Leasing (Q3) 1.3 msf 0.43 msf Rs 3,015 crore 30.3 msf Strong Operating Projects under Credit Rating Net Debt3 Cashflow Construction A A(-) Rs 18,171
Slide 32: Portfolio Snapshot – Q3FY20
Portfolio Snapshot – Q3FY20 Rental Revenue Occupancy Rs 759 crore 95%* Development Potential ~ 30 msf Operational Portfolio Mark-to-Market Potential Leased ~ 28.8 msf 17% Vacant Stock ~ 1.5 msf 32 *On completed properties
Slide 33: DCCDL – Development Update
DCCDL – Development Update Project / Development Development SPV Potential Status Chennai ~0.8 msf OC – Block 11 received Block 12 by FY21 IT SEZ DLF Down Town, ~11 msf Phase I ~3 msf under construction Gurugram DLF Down Town, ~6.8 msf Phase I ~2 msf Bhoomi Pujan done Chennai DLF Cyber City, Gurugra
Slide 34: DCCDL - Summary Consolidated Financial Result
DCCDL - Summary Consolidated Financial Result ❑ DCCDL net operating cashflow: INR Rs 749 crore ❑ Gross Leasing of 1.3 msf & Net Leasing of 0.43 msf during the Quarter. Q3FY20 Gross Area Leased (msf ) Net Area Leased ( msf ) Offices 1.1 0.37 Retail 0.2 0.06 ❑ Net rental for the Quarter, stood at INR
Slide 35: DCCDL Consolidated – Q3FY20
DCCDL Consolidated – Q3FY20 In Rs Crore Particulars Q3FY20 Q2FY20 % Change Rental Revenue 759 761 (0.2%) Other Revenue1 372 618 (40%) Expenses 294 355 17% EBITDA ( including other income ) 836 1024 (18%) EBITDA ( excluding other income ) 783 800 (2%) Finance Cost 426 445 4% Depreciation 130 128 2% P
Slide 36: DCCDL Balance Sheet Abstract (Consolidated)
DCCDL Balance Sheet Abstract (Consolidated) In Rs Crore Particulars 31 Dec 2019 FY19 Non-current assets 26,926 19,322 Current assets 1,295 8,366 Total Assets 28,221 27,688 Equity 5,039 7,464 Non-current liabilities 20,200 17,353 Current liabilities 2,982 2,871 Total Liabilities 28,221 27,688 36
Slide 37: DCCDL Cash Flow Abstract (Consolidated)
DCCDL Cash Flow Abstract (Consolidated) (INR Crs.) Q3 FY20 Operating Cash Flow before Interest & Tax* 778 • Interest received 490 • Interest paid (427) • Tax (92) Operating Cash Flow after Interest & Tax 749 • Capex1 (684) Optimum cash flow to finance future development and maintain strong liquidity
Slide 38: Portfolio Snapshot- Q3FY20
Portfolio Snapshot- Q3FY20 Leasable Area (Lacs sqf) Leased Leased/ W.A rate- Current rate Building Name Complet Under # Area Leasable leased area MTM % WALE** Total (` /sqf) ed Construction (Lacs sqf) Area % (` /sqf)*** OFFICES Cyber City 101.6 - 101.6 100.0 98% 103 120 17% 4.8 Cyber City SEZ 28.9 -
Slide 39: Significant Mark to Market Potential on Existing Commercial Portfolio
Significant Mark to Market Potential on Existing Commercial Portfolio Mark-to-market Potential: Significant Room for Rent Revisions Cyber City Cyber SEZ Chennai SEZ 30% 17% 17% 120 75 100 77 103 64 Weighted Average Market rent Weighted Average Market rent Weighted Average Market rent Rental Rental R
Slide 40: Rental Portfolio: CAGR 2019 – 2022 ~ 20%
Rental Portfolio : CAGR 2019 – 2022 ~ 20% 4700 Run Rate FY19 Rs 2,675 crore Anticipated Run Rate FY22 Rs 4,700 crore ^ Stage II includes DLF Avenue and OHC share 40 # These are indicative numbers
Slide 41: Rental Portfolio – Operational assets ~ 30.3 msf
Rental Portfolio – Operational assets ~ 30.3 msf TENANT MIX Top 10 Tenants contributing 21% of Gross Revenue ` Cr Tenant Sector % of Rental Others 25% Cognizant Technology 4% IBM Technology 4% Concentrix Technology 2% Amex Business Support 2% Technology TCS Technology 2% Engineering 49% BT Global Te
Slide 42: Office Portfolio
Office Portfolio Cyber City Non-SEZ – 10.17 msf Cyber City SEZ – 2.89 msf DLF Hyderabad IT SEZ – 2.91 msf DLF Silokhera IT SEZ – 1.94 msf DLF Chennai IT SEZ – 6.57 msf Chandigarh – 0.65 msf Kolkata IT Park – 1.29 msf Operational assets – ~26.4 msf 42
Slide 43: Retail Portfolio
Retail Portfolio DLF Emporio Chandigarh City Centre • Location: Vasant Kunj, Delhi • Location: Chandigarh • Commission Date: Aug’ 08 • Commission Date: May’ 08 • TLA: 0.3 msf • TLA: 0.2 msf North Delhi East Delhi Central Delhi South West Delhi South Delhi Gurugram DLF Promenade Cyberhub • Location:
Slide 44: DCCDL – Development Update
DCCDL – Development Update ❑ Total leasable area of ~ 7 msf spread across ~ 26 ❑ Total leasable area of ~ 11msf; initiated acres; initiated development of 1st Phase of office development of 1st Phase of office space of space of ~ 2 msf. ~ 3msf. ❑ Strategically located in Taramani - Gateway to the ❑
Slide 45: Disclaimer
Disclaimer This presentation contains certain forward looking statements concerning DLF’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The r
Slide 46: Thank You
THANK YOU 46